Domestic Fuel

Calling all gear-heads. I’ve come across an “e-book” that is just up your alley. It’s called “E-100-4: The New Revolutionary Fuel,” and is a technical overview of how to capitalize on ethanol’s high performance properties in engines. Actually, this overview is good for anyone who understands that ethanol’s fuel loss at higher blends is an engine problem, not a fuel problem.

Most ethanol advocates understand that today’s engines are not manufactured to optimize ethanol; they are manufactured to optimize gasoline or diesel. Yet for nearly 100 years, there have been major technological breakthroughs using ethanol blends that have been “hidden” from consumers and never brought to market. In this technical overview, author Aureon Kwolek highlights all of these advancements, explains how they work and gives us the low-down on what companies are working on what technologies and their plans, if any to bring them to market.

But what may have been most interesting about the e-book, is that Kwolek presents a very compelling case on why E-100-4 should be the fuel of the future – not E85. The major difference between E-100-4 is that is contains water and is known as hydrous ethanol. In Brazil, all of their flex-fuel vehicles run on hydrous ethanol (which is less expensive to produce and offers better fuel efficiency that anhydrous ethanol according to Kwolek). In America, we remove all the water before it is sold and blended with gasoline adding an extra step and extra expense.

Kwolek writes, “ We can also optimize that engine for hydrous ethanol. Our next assignment is converting water vapor into steam, and then into hydrogen, inside the combustion chamber. Adding the water component adds a quantum leap to fuel efficiency.”

So if the technology is there to fuel vehicles with E-100-4 hydrous ethanol, and for them to get better gas mileage than all other fuels and fuel blends, why isn’t it coming to market? Kwolek surmises the problem lies with the relationship between the petroleum industry and the auto industry. He says it’s “Because automakers have a lucrative alliance with petroleum and a conflict of interest with fuel efficiency.”

This is a great overview of ethanol engine technology and one that I highly recommend. Kwolek cites all of his resources and gives links so that readers can get more information on all of the technologies that he features in the summary. You can purchase a copy of the e-book, E-100-4: The New Revolutionary Fuel,” here.

General Wesley Clark brought his message about ethanol to the people through an article published in the October/November issue of Washington Monthly. In the article, Clark, who is a Co-Chairman for ethanol industry organization Growth Energy, discusses the staggering amount of money the United States sends to foreign countries for oil – $821 million EVERY day. This equates to $300 billion each year, or about $1,000 for every American — man, woman and child. This number represents about 60 percent of the trade deficit.

Clark writes, “But this tragic situation also presents us with the greatest opportunity in a decade to recharge America’s economy and build a platform for renewed economic growth. I want to tell you how it can be done. And without a tax on gasoline or carbon.”

So how can it be done? Invest in ethanol and other homegrown fuels.

According to Clark, today, the U.S. is consuming almost three times as much crude oil as it produces with 71 percent going for transportation. During the second quarter of 2010 America consumed 9.2 million barrels per day of gasoline, plus 5.1 million barrels for other transportation, such as jet fuel and diesel for trucks and locomotives. According to the Energy Information Administration, 94 percent of the energy used in transportation is derived from petroleum. Therefore, Clark concludes, energy independence is largely about transportation—not about insulating our houses, turning down thermostats, or swapping out light bulbs.

He then lays out three approaches to the problem: produce more domestic oil, conservation and biofuels, specifically ethanol, and gives a detailed history and strategy for each approach. He concludes that not only can we get rid of our $300 billion a year oil habit, but we already know how to accomplish it.

Clark concludes, “Instead of making the American people pay more for fuel, what we need to do is get them on our side, in favor of energy independence…At a time when the American economy has lost millions of jobs, and when most economists despair of America returning to full employment anytime in the near future, we don’t need to put an American on the moon. But we do need to get past denial and overcome our addiction to foreign oil. It’s not as if we don’t know how.”

You can read the full article, “Bringing It All Back Home,” here.

In an update to a story from last week, the U.S. Navy successful tested an algae biodiesel blend in its pilot Navy Riverine Command Boat at the Naval Base in Norfolk, Virginia. The renewable fuel was provided by Solazyme, who has a contract with the U.S. Navy to provide them with 150,000 gallons of advanced biofuels made from algae. All of Solazyme’s Soladiesel diesel fuels meet ASTM, EU and military specifications.

“Solazyme is proud to provide the first microbially derived ship fuel used by the Navy in a military boat,” said Solazyme CEO and Co-Founder Jonathan Wolfson. “The United States Navy’s commitment to reducing dependence on fossil fuels has taken another step forward today and we applaud their leadership. We are honored to be a part of Navy’s efforts to reduce its reliance on fossil fuels.”

Solazyme believes it’s technology will help the Department of Defense reduce its carbon footprint, combat global climate change and lead in the development of clean and renewable energy sources.

The Brazilian state of Mato Grosso is looking at producing ethanol from the state’s excess corn to reduce the miles Brazilian sugarcane ethanol would travel. On Wednesday, a combined industry and governmental committee that has been formed to study corn, announced that it has commissioned a study by state researcher Embrapa to look at the viability of producing corn ethanol.

“It’s very embryonic, only an idea. It would make use of corn, which is widely available in Mato Grosso, which is very distant from the south,” said Cesar Borges de Sousa, chairman of the joint committee known as the “corn sector chamber” in Rueters.

While nearly all the cars in Brazil are flex-fuel vehicles and are able to operate all the way up to 100 percent hydrous ethanol, sugarcane ethanol is not always the cheapest at the pump, especially in outlaying states. Variables include sugarcane harvest, sugar prices, oil prices, and transportation costs, among others. Another unusual strategy of the Brazilians is all flex-fuel vehicle purchases come with a spreadsheet that details when using ethanol and at what blend, is most cost efficient. Yet even when it costs more to blend ethanol, many consumers still purchase it at the pump because they understand the security and economic benefits.

According to an article in Reuters, the corn committee’s idea is to make cheaper ethanol locally to power cars and agricultural machinery as well as give corn producers another option for sale. The corn would be processed at several of the cane ethanol mills in the state during the month that all sugarcane mills are offline.

“It would add value right there in the place where it is produced,” de Sousa said, stressing the idea would only move forward if it proved financially and technically viable.

The U.S. Environmental Protection Agency has given the green light to E15 ethanol … or maybe a “pale” green light, in the case where it is a partial waiver to allow up to 15 percent ethanol in gasoline for 2007 model year vehicles or newer.

In this edition of the Domestic Fuel Cast, we hear from EPA Assistant Administrator for Air and Radiation Gina McCarthy, who says the agency needs input on what the E15 pump labels should look like. We also hear from Renewable Fuels Association President Bob Dinneen, who is pleased with seeing the rise in the percentage of ethanol allowed in gasoline but is concerned that it is unnecessarily limited to 2007 model year vehicles and newer. He also worries that a “warning” label about E15 at the pumps could confuse consumers and scare them away from using the green fuel. Tom Buis, CEO of Growth Energy and ethanol producer POET’s president Jeff Broin believe the comment process will weed out any problems, and consumers, and in turn, retailers will end up embracing E15.

More information, including how you can give your input on the label is available at the EPA’s E15 website.

It’s an important conversation, and you can hear more of it in the Domestic Fuel Cast here. Domestic Fuel Cast

You can also subscribe to the DomesticFuel Cast here.:

The 2012 Ford Focus will receive up to 40 mpg using E10 and will also be able to run on E85. The 2.0-liter engine will combine the technology of gasoline direct injection with twin independent variable camshaft timing and E85 flexible fuel capability.

Ford notes that the direct injection improves fuel economy and performance by delivering the exact amount of gasoline right into the combustion chamber. The engine can operate at a high 12:1 compression ratio, compared with the 2011 Focus’ engine’s 10:1 ratio, further enhancing power and efficiency. And unlike most competitive direct injection systems, the engine will be E85 flex fuel-capable.

The new Focus will be among the global leaders in fuel economy and CO2 emissions,” said Derrick Kuzak, group vice president, Global Product Development. “We will continue to pioneer new technologies beyond launch, including the zero-emissions Focus Electric BEV launching in North America in 2011. Throughout its life cycle, Focus in all forms, in all regions, will demonstrate the Ford commitment to deliver unsurpassed fuel economy on a truly global scale.”

Ford’s 2011 flexible fuel vehicle line includes the Crown Victoria, E-Series Van, Escape, Expedition, F-150 and Super Duty. Their Lincoln FFV line includes the Navigator and Town Car. Mercury’s 2011 FFVs are the Grand Marquis, Mariner and Milan.

A new high-speed passenger train between Chicago and Iowa City could end up running on biodiesel.

Medill Reports Chicago has this piece on a high-speed rail line that the Iowa and Illinois departments of transportation just received $230 million to build, part of the federal government’s $8 billion plan to modernize the rail system with nine high speed rail lines connecting major cities in California, Florida, Ohio, the Midwest, the Pacific Northwest and the Southeast:

The new line [between Iowa city and Chicago] will be called the ‘green’ line for all of the environmentally friendly initiatives that will be incorporated into the train line, including onboard recycling. Biodiesel fuel, made from vegetable oil will power the trains, and soy-based lubricants will be used on the locomotives, according to Mike Murray, transportation policy advisor to [Illinois] Governor Quinn.

“We’re hoping to get to 20 percent biodiesel used on the locomotives. And it’s something that can come from Illinois. Part of it has to do with being green, but part of it has to do with building a rail project that creates jobs here,” Murray said.

Right now, Amtrak is currently testing biodiesel on its Oklahoma City-Fort Worth, Texas route.

In February 2009, when the Recovery Act was signed into law, the federal government set up $56.1 million for microloans for small businesses … maybe to make up a little bit for the billions that was handed out to the big banks. One of the groups able to take advantage of that money has been the small biodiesel producers.

This article from Biodiesel Magazine points out how one East Coast biodiesel producer has been able to take advantage of those Small Business Administration loans to keep afloat in these days of no $1-a-gallon federal blender tax credit:

Like many small biodiesel businesses caught in the credit crunch, Tri-State Biodiesel LLC was in dire need of working capital for equipment upgrades and to retain and hire employees.

Facing the possibility of layoffs or an inability to compete in the biodiesel market with old equipment, the Bronx, N.Y.-based company, which distributes biodiesel and collects waste cooking oil from 2,700 restaurants in the New York City area and cleans it up for sale as a biodiesel feedstock, managed to get a five-year $50,000 loan at a reasonable rate from Boc Capital. Boc is an intermediary lender through the SBA, which received $750,000 from the federal government thanks to the 2009 stimulus package. For Baker, the microloan was a solid option for his company to help finance upgrades to its oil rendering equipment, and hire more staff. “It helped us to increase our profitability,” Baker tells Biodiesel Magazine. “We’ve actually grown and hired people as a result.”

The article does point out that these microloans aren’t for everyone. Many operations would need much more than the $50,000 limit on the loans, and they shouldn’t be used as a primary source of credit to sustain operations.

Water is becoming a growing global concern and according to a new issues brief released by the United Nations Environment Programme (UNEP), water could determine the degree to which bioenergy can contribute to combating climate change through renewable fuels. “Water and Bioenergy” was presented during the Convention on Biodiversity meeting (CBD COP10) in Nagoya, Japan.

One element of great concern addressed in the paper is in areas where water is already scarce, biofuels programs could increase environmental and social pressures. The paper continued by stating that “bioenergy development can have an impact on biodiversity on a number of levels: by changing land-use, introducing invasive species for use in biofuel production, overusing water and pushing agricultural production into areas with high conservation value (indirect land use change).” However, the paper also said that if done correctly, on both a global and local level, biofuel programs can be beneficial.

“There is no doubt that we need to decrease our reliance on fossil fuels and move to cleaner, more environmentally friendly options, but we need to make sure we are not creating more problems than we solve,” said Achim Steiner, Under-Secretary General of the United Nations and UNEP Executive Director.

Steiner continued, “We need to examine all the risks, so that we can take full advantage of the opportunities, for emissions cuts, for new green jobs, and for raising the standards of living for some of the world’s poorest communities.”

UNEP spells out some of those considerations in four issues papers now being circulated that compliment the report, “Accessing Biofuels,” launched last year.

In “Water and Bioenergy” the UNEP cites research that shows that two per cent, or 44 km3, of the global water withdrawals for irrigation is being used for bioenergy production. However, if current bioenergy standards and targets were fully implemented, a further 180 km3 of irrigation water would be needed, creating additional pressure on water resources and potentially impacting on food production and water supplies, especially in those areas already experiencing water stress.

According to the paper, the water footprint of bioenergy can be up to 400 times greater than that of traditional fossil fuels; therefore, the greatest challenge will be to determine how to meet future bioenergy demand without overexploiting or damaging water resources, and how to better manage bioenergy supply chains to reduce the pressure on water use and minimize impacts on water quality.

You can download “Water and Bioenergy” here.

The Renewable Fuels Association (RFA) has a good post on the E-xchange Blog this week about the relationship between ethanol and gasoline prices and the importance of the Volumetric Ethanol Excise Tax Credit, or VEETC.

RFA Vice President for Research Geoff Cooper notes that ethanol prices have strengthened recently and while gas prices have also increased slightly, gasoline prices would be higher were it not for ethanol in the mix. “Despite the fact that the market price for ethanol has been above the price of gasoline in recent weeks, the ethanol blender’s tax credit has kept the effective price of ethanol below the price of gasoline,” Cooper says.

As of last week, Chicago spot prices showed ethanol selling for $0.15 less than the blend-ready gasoline (called Reformulated Blendstock for Oxygenated Blending, or RBOB), when VEETC is accounted for. This differential translates to a gallon of E10 being 1.5 cents/gallon cheaper at the retail level than unleaded gasoline without ethanol.

This simple example demonstrates the importance and effectiveness of the VEETC. In essence, VEETC is enhancing the ability of ethanol producers to manage sharply higher corn prices, while at the same time ensuring ethanol is priced competitively with gasoline and ultimately saving consumers money.

Read Cooper’s analysis here.

According to a new report released by Pike Research, algae biofuels production will reach 61 million gallons per year with a corresponding market value of $1.3 billion by 2020. While barely a drop in the bucket for biofuels, this represents a compound annual growth rate (CAGR) of 72 percent, roughly on par with early development in the biodiesel industry. The study, “Algae-Based Biofuels,” examines the key growth drivers behind the algae-based biofuels market and outlines unresolved supply challenges. The report includes detailed 10-year market forecasts, segmented by world region, along with analysis of market conditions in key countries and profiles of key industry players that are shaping the emerging algae biofuels business.

Early research has given preview to algae’s advantages for fuel production including its ability to yield 2 to 20 times more oil per acre than leading oilseed crops. In addition, it doesn’t utilize non food-based feedstock and can grow on non-arable land and in wastewater, including salt water.

“On paper, algae could displace worldwide petroleum use altogether, however, the industry has yet to produce a drop of oil for commercial production,” said Pike Research President Clint Wheelock. “Although the algae-based biofuels market will grow rapidly once key cost hurdles are overcome, widespread scale-up will be hampered by a number of difficult challenges including access to nutrients, water, and private capital.”

Wheelock added that with the cost of production still a key obstacle to widespread production, many companies are refocusing production efforts on low-volume, high-value co-products to develop revenue streams over the next decade.

The report anticipates that the U.S. will lead the way in early production with nearly 50 percent of algae activity happening in the states. Next in line is the European Union, which is home to about 30 percent of algae activity, but their efforts will will initially hampered by the industry’s focus on university research, and later by insufficient access to water, land and nutrient sources. Over time, the report anticipates that Latin America and Asia Pacific will gain significant market share.

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A Buffalo, Minnesota fuel station is offering some Halloween treats for flex-fuel vehicle and diesel motorists this weekend.

The Buffalo Holiday station is promoting E85 fuel with an 85 cent per gallon discount and B5 biodiesel with a 10 cent per gallon discount on Saturday, October 30, from 10 a.m. until noon. The purpose of the Halloween weekend promotion is to encourage the use of E85 and biodiesel, which reduces tailpipe emissions, air pollution and related health problems. There will also be in-store specials during the promotion.

E85 is for use in flex fuel vehicles (FFVs) only. While there are more than 225,000 FFVs registered in Minnesota, not every owner is aware they have a choice at the pump, and that their car, van, SUV or truck can run on E85, gasoline, or any combinations of the two fuels. All diesel vehicles can use B5 biodiesel.

Supporters of the promotion include Holiday Companies, the Wright-Hennepin County Corn Growers, the Minnesota Corn Growers Association, the Minnesota Soybean Growers Association, the Clean Air Choice Team and the American Lung Association in Minnesota, which supports the use of E85 and biodiesel fuels as part of an overall strategy to reduce and prevent air pollution. For a complete listing of the 355+ E85 stations in Minnesota, as well as a list of all flex fuel vehicles that can use the ethanol-based fuel, visit www.CleanAirChoice.org.

A California company has found a way to magnify the power of the sun and could end up cutting the cost of solar panels in half.

HyperSolar, Inc. is developing a breakthrough technology that actually magnifies the power of the sun, getting more energy into a solar cell and getting more energy out.

“The way we’re doing that is by using an inexpensive optical layer. We’re able to concentrate the sun and deliver more sunlight on to a solar cell,” explains Tim Young, the CEO of HyperSolar.

Young goes on to point out that most of the work in making solar more affordable has focused on solar cell efficiency. He says HyperSolar is taking a different approach using microfiber optics that take the cell’s efficiency out of the equation. Young admits it’s a tricky process, but if it works, they’ll be able to reduce the amount of solar cells needed to produce the same amount of electricity.

“Our goal is to reduce the amount of silicon that goes into that solar module (which makes up) 80 to 95 percent of the price of a solar module.” Young says they could end up reducing the cost of a solar array by 40 to 45 percent, bringing the cost of solar down to grid parity and making the power of the sun on par with conventional energy production methods.

Young says the biggest challenges still facing HyperSolar are making sure the materials and process are cheaper than using silicon and producing the magnifying layer able to stand up to the constant rays of the sun.

He says they’re still in the prototype stage and hope to have their product on the market within the next 12 months.

You can hear more of my conversation with Young here: Tim Young, HyperSolar

Canopy Airport Parking has partnered with Frontier Airlines to offer fliers a chance to ride to and from their green parking facility and the Frontier ticket counters on one of Canopy’s seven biodiesel and hybrid shuttles.

Biodiesel Magazine reports the service will begin in late November:

A 3,000-gallon tank will be installed on-site to refuel the bus fleet, according to Karl Kelman, Canopy’s marketing manager. “We also have buses that run on compressed natural gas and have a gasoline hybrid bus as well,” he said.

In addition to biodiesel being used by Canopy’s shuttle buses, the innovative parking facility is expected to feature other environmentally friendly technologies, including solar power, geothermal and wind power. When the parking facility opens, Kelman said it should be the country’s first to feature energy efficient technologies from renewable sources. “We’re hopeful that at some point there will be other parking facilities like Canopy that integrate similar green features.”

This parking facility is seen as a prototype in environmentally friendly facilities.

A cosmetic company that touts its products as “honestly natural, truly beautiful” is using a pretty beautiful fuel to spread its message.

Organic and natural skin and baby care products company Weleda has been taking a biodiesel-powered truck across North America to promote its cosmetics and to help raise awareness for the Safe Cosmetics Act of 2010:

We’re driving our Biodiesel truck from one side of North America to another to spread our message that what goes on you goes in you, and to spread our message and share our wonderful products.

The next, and the last, stops for the tour will be in the Los Angeles area Nov. 5-7. More information is available on the company’s Honestly
Natural, Truly Beautiful Tour website.